One of the largest healthcare technology names took a major hit today. It's time to breakdown $TDOC, otherwise known as Teladoc.
Current Price: $202.01
52/Wk High: $253.00
52/Wk Low: $54.581
Read below for the breakdown.
COVID-19 has pushed one major sector into the spotlight and into an exponential future. This growing sector is virtual healthcare and Teladoc is a leader of the industry.
$TDOC provides a vast amount of services. From access to a digital array of health services and solutions to virtual business to business health care services.
Teladoc’s services have been in high demand and the company is growing at a rapid rate. In the Q2 report not long ago $TDOC reported a massive 203% YOY increase in total visits (Totalling 2.8 million visits for the quarter).
Not only that but the company reported great Q2 earnings. While EPS did miss at $-0.34 compared to the expected $-0.23 EPS, revenue was stellar.
The revenue beat expectations for Q2 and came in at a whopping $241 million (85% YOY increase). While Q2 was great and saw rapid growth the terrific guidance only goes to show $TDOC’s potential.
Teladoc expects Q3 to be a massive quarter as well. Currently, the company believes that revenue will grow 103% in Q3 ($275 million to $285 million).
Furthermore, $TDOC is making massive moves. Just today Teladoc announced the purchase of $LVGO (Livongo Health) for $18.5 billion.
Livongo health being a competitor in the telehealth space, it was an excellent buy for the company. The deal will expand the market share of $TDOC and once the merger is complete the expected revenue is estimated to be $1.3 billion for 2020.
While many believe $TDOC overpaid for $LVGO, the reality is that the telehealth space is extremely fast-growing and to merge now was likely the best move for the future of Teladoc.
Moving on to the analysts, the bullishness does not stop. Currently, the average price target is $232.63/share representing a whopping 15.16% gain. Secondly, the high price target is $280.00/share and low is $175/share.
Not only are analysts bullish but the big money is as well. Currently, 90.57% of $TDOC is owned by institutions. Top holders include BlackRock, AllianceBernstein, and Baillie Gifford & Co.
Given that $TDOC took a 19% downside hit today, I think that Teladoc is a strong buy for investors betting on the future of healthcare.
With growth booming for both $TDOC and $LVGO I think it’s tough not to like the merger and future for the telehealth industry.
In short, if you are an investor betting on the future then Teladoc is one name to take a serious look at.
EAT - SLEEP- PROFIT
Disclaimer: This is not direct financial advice, simply opinion based on independent research.
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